FOH,
I'd have to disagree with your bottom line.
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The bottom line is that operating flights where the revenue is less than the cost of fuel, catering, and crew is not good business. If the variable costs to operate the flight are higher than the revenue plus the cost to reaccomodate passengers on another flight, then fly the plane.
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Until interline travel becomes commonplace, and the market model wil support segment vs destination pricing, Companies will be required to maintain some unprofitable legs. Admittedly, these will be minimalized, but if a carrier doesn't go to a desired location....I do not consider them. The analysis of Variable costs vs revenues works....but you need to include business lost due to service limitations.
I agree wholeheartedly that the current security measures do little to actually increase security...but do the masses know that? Sometimes actual action is not as important as the perception. Real change to the security system will take time and dollars. This was a way to get the airline industry back on track (somewhat) ...now.
I have strong feelings about my travel and the convenience it offers. Take the convenience away, or increase pricing... and I will find other ways to get business done.